U.S. dollar holds firm in Tokyo

TOKYO (AFP): The dollar held firm in Tokyo yesterday as many investors stuck to the sidelines waiting for the release of U.S. employment data later in the day.

The spot dollar stood at 84.82-84.85 yen in late afternoon, slightly up from its early morning level of 84.70-84.75 yen and from New York's late Thursday quote of 84.60 yen. It stood at 84.74-84.77 yen a day earlier.

A chief dealer with a Japanese bank said that the employment data might as well be "an affirmation of the negative view" that the U.S. economy was on its "descent to another recession."

But dealers said the market should not be negative on the dollar in the short term and that the dollar's upside resistance was very strong at around 85.10 yen.

"As soon as the dollar hits the 85.00 yen level, exporters start selling dollars as if on cue," the chief dealer said.

The U.S. unit slid back against the mark. It was quoted at 1.4077-1.4080 mark in late afternoon, down from 1.4156-1.4158 mark a day earlier.

In Singapore, the U.S. dollar closed higher against the mark but lower against the yen in Singapore trading after heavy buying pushed the greenback up across the board, dealers said.

The dollar ended at 1.4086 marks after opening at 1.4060 while closing lower at 84.63 yen from the opening level of 84.90.

The U.S. dollar was well offered at the 85 levels for the yen while the British pound, sidelined on range trading, ended at $1.5976, other dealers said.

The dollar ended higher at 4.9590 French franc after opening at 4.9500.

Except for the Indonesian rupiah, the U.S. dollar fell against currencies of Southeast Asia's booming economies.

The U.S. dollar rose to 2,231 Indonesian rupiah from 2,227 on Thursday but was down to 2.4585 Malaysian ringgit from 2.4670, to S$1.3896 from S$1.3935 and 24.66 Thai baht from 24.70.

In London, the dollar was steady in early European trading yesterday before publication of U.S. unemployment figures for May later in the day.

The dollar was being traded at 1.4085 marks representing a slight rally. It had fallen to 1.4030 overnight in Asian trading but remained below the closing price in London on Thursday of 1.4195.

Dealers said that if the U.S. non-farm payroll statistics showed that the U.S. economy had created fewer than 150,000 jobs, they would take this as further evidence that the U.S. economy was slowing down faster than had been expected.

The dollar was being traded at 1.4085 marks compared with 1.4195 at the close on Thursday, at 84.70 yen compared with 85, at 1.1645 Swiss francs compared with 1.1690 and at 4.9650 French francs compared with 4.9825.

Gold rose to $384.75 an ounce compared with 383.50.

The Hong Kong gold and currency markets were closed yesterday for Tuen Ng Festival Holiday. Trading will resume today.